If bids are taken at the end of each year's contractual agreement with a company's vendors, then each time the company engages in this activity, it is considered a straight rebuy purchase.

Question

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A straight rebuy purchase occurs when a company simply reorders products/services from a vendor without any modifications or negotiations. If bids are taken at the end of each year's contractual agreement, then it implies that there are negotiations and comparisons being made between vendors, making it a modified rebuy purchase.

If Bids Are Taken at the End of Each Year's